Oilex Planning Drilling Program for Cambay

Cambay Field in the Gulf of Cambay
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Oilex says that a drilling program is planned to commence on Cambay Field Western High, Gujarat in June. The Cambay Field Joint Venture (JV) approved the program at a meeting of the Operating Committee in New Delhi recently. Oilex also announces today its first estimates of the hydrocarbons in place for the Oligocene OS II horizon in this portion of the Cambay Field, which is the immediate objective in this drilling program. The best estimate potential resource volume in place is 29 million barrels of oil and 34 billion cubic feet of gas, with a low to high range for oil of 13 to 84 million barrels.

The Cambay Field was discovered in 1957 and over 60 wells have been drilled on the block. The majority of the wells have been shut in for extended periods of time because of sand or water incursion or downhole equipment problems. A small number of wells are producing oil on an intermittent basis. Oilex, together with its JV partners, intends to conduct drilling operations to better understand the field before considering redevelopment alternatives.

Oilex recently announced that it had increased its participating interest in the Cambay Field to 45% (from 30%) as part of a transaction involving two other small fields. The acquisition of the additional 15% interest remains subject to approval from the government of India.

Oilex is the nominated Operator for the JV and presented the 2006-2007 work program and budget to the JV in New Delhi. The program is laid out in two phases that are fundamentally separated for logistic reasons due to the monsoon season between mid June and October. In the first phase, 2 firm and 1 contingent well are planned to be drilled on monsoon pads starting early June. Oilex has sufficient financial resources to fund its share of the first phase of the program. Concurrently, Oilex is investigating the possibility of acquiring a 3D seismic survey over the western part of the block to commence late May and to be completed during a 15-20 day gap before the monsoon. The second part of the 3D seismic survey will be acquired over the eastern half of the block after the monsoon.

The advantage of this phased program is that well and seismic data will be available for refining seismic coverage and well locations prior to the commencement of the second phase of work, post-monsoon. Modern well data including wireline logs, formation pressure and fluid characteristics will be acquired during drilling and used to normalise the existing data set which has been digitised and correlated across all available wells.

Mapping completed to date is based on wireline correlations of notable stratigraphic markers and these maps have been used to pick the locations for the wells in the first phase of drilling. The structure of particular interest in the western part of the block is a north-south trending faulted anticline along which many old wells have produced oil and gas or have strong indications of oil and gas in good quality reservoirs, albeit in relatively low volumes. Reservoir rocks occur throughout the Tertiary section in the Eocene, Oligocene and Miocene and these intervals will be evaluated thoroughly by the first phase wells. These sandstones are proven producers in fields immediately to the north and south of Cambay.

Three locations have been selected from the several alternatives, depending on weather conditions and drilling results, either 2 or 3 wells will be drilled to depths of up to 1,900 meters.


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